All Forum Posts by: Salvatore Lentini

@Jeremy Powers@Ken Dunbar - that's why you focus on the numbers before buying the property.  You're not just taking out a loan.  The idea is you're taking out a loan on an investment that will make you enough money to pay back the loan AND pay you a profit.  The lenders want to be protected so they won't loan you 100% of the amount needed.  So their want for protection actually protects you too.  The investment you are buying is worth more than the loan amount.  The bank will make sure of that.

@Jeremy Powers - wholesaling is how I got started.  Message me if you have questions.

@Connor Maegaard - there are 4 things you need to focus on for the next property and they are the same as when you bought the first one.

1) Put steps in place that will allow you to FIND a property.  

2) Figure out how you will finance the property

3) Have a plan on how you will manage the property

4) How will your current property and this next property fit into your overall plan/goals for your real estate portfolio?

@Josh Brimhall - as with all investing there are always going to be differing opinions on decisions.  If you have that much equity in the property you could refi it instead of selling it.  As long as it still cash flows, you can get 75% of that $200K out and instead of it being taxed as capital gains it will not get taxed at all because it's a loan.

@Diego Alvarado - will it cashflow after factoring in your expected rent minus mortgage, the amount you intend to put into the rehab, taxes, insurance, capex reserves, vacancy and repair allowance?  Also, do you intend to do a cash out refi to pull money for your next investment?

@Christian Gaxiola - that's the inherent problem with investing with your own money.  Unless you're incredibly wealthy you are going to run out of funds quickly.  It's better to be strategic with your investments and stretch the money that you have.  Do a combination of private money, hard money, your money, seller financing, seller 2nds etc.  If you do that you will be able to be able to invest in more deals and grow your net worth exponentially.

@Amrakh Rustamov - you are not alone in your feelings.  Most investors get that feeling.  I teach my students a variety of methods to become less fearful and to get out of Analysis Paralysis.  It's a very real thing.  I was in that zone for 9 years after reading a real estate book and decided I wanted to get into real estate so I know a thing or two about how you feel!

Hi @Tremon P. - You can probably get a loan for 10% down if it's a short term rehab you're looking to turn into a long term rental.  You could buy it with 10% down, rehab it wth 85-100% lender financing and then refi into a long term loan.  If you run the numbers right and the rehab right you should own your rental property for $0 at the end.  Message me for more info.

@Nic Starkey - regarding your boots on the ground, is that person going to be a partner?  And what's the reason for Springfield IL?  Investing out of state is more difficult and risky than some make it sound.  I'm not saying you shouldn't do it, but keep in mind the numbers on paper often look better than reality.

@Ryan Harvel - I can't help with that one. Wholesaling virtually is a foreign concept to me. How would you view the property? How would you figure the ARV? How would you negotiate with the seller? Not saying it's impossible but I feel like it would be very difficult.